A report on diversifying Tasmania's economy identifies wine as one of the most attractive sectors for growth.

The 800 page report commissioned by the Federal Department of Regional Australia includes a chapter by wine consultant, Dr Richard Smart.

Dr Smart says the wine industry could profitably expand much faster than the 10 year average of 65 hectares per annum.

Richard Smart says obstacles to growth include lack of skills training and location-specific research investment, inappropriate zoning regulations, inadequate infrastructure, low levels of investment in marketing and promotion, and lack of scale in vineyards, processing, and distribution.

Dr Smart says Tasmania must attract more investment in bigger vineyards and vats and wine processors to raise the short-term growth rate to a level closer to international rivals such as New Zealand.